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Property sold designated principal residence under section 45(2). I like to confirm that in addition to indicating on info screen, I have to complete Line 179 at the bottom portion of S3 and also form 2091 top portion only regarding description of the property and signature? in this case property sold next year after acquisition year so it is only one year.

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Just so I'm clear, 45(2) election was claimed in 2016 when started renting it to prevent change in use from occurring and property actually sold in 2017 correct? If so, yes you need to complete Line 179 on Schedule 3, but you also need to complete the T2091 like you normally would. So likely lines 1,2,4,5,7, and 9.

There still should be no tax owing as the year the property was rented can be claimed as "IF" the property was still your principal residence for that year.

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Thanks Mike, Yes, Property bought in 2016 started renting it, 2016 return filed and election 45(2) sent. Sold in 2017. I corrected as per your suggestion and not form 2091 is showing at line 1 as 1 line 3 as 1, Line 4 as 1, Line 5 as 0. I was under impression that I do not have to fill line 7 and 9 (ACB of property),Now I am completing it?

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Technically line 1, 3, 4 and 6 should ALL be 2 (2016 and 2017). Net result is still the same, but there were two years. I always complete 7 and 9. Perhaps this is not required, but I complete them to be on the safe side. You could technically add your Outlays and Expenses on line 8 if you wanted to as well. End result, no tax owing, so I suppose it's not a huge deal either way.

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